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CJ Logistics Introduces Pallet Made With Recycled Plastic in Indonesian Distribution Center, Expanding Global ESG Efforts

2022-06-30 08:00
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  • Replaced existing pallets at its Jakarta distribution center with Zero-Carbon Pallets boasting a longer product lifespan and higher durability than existing pallets.
  • Eco-friendly pallets are made with plastic waste produced during the manufacturing of airtight containers and show no issues in strength and performance when introduced at South Korea's logistics sites.
  • Carbon emissions are reduced by 67.3 kg per pallet, a total of 26,880 for 400 pallets which is the equivalent of planting 8,960 trees.

SEOUL, South Korea and JAKARTA, Indonesia, June 30, 2022 /PRNewswire/ -- CJ Logistics announced on 30 June that the company has expanded its global environmental, social and governance (ESG) management with the introduction of 400 Zero-Carbon Pallets made with recycled plastic waste at its distribution center in Jakarta, Indonesia. The adoption of these eco-friendly pallets has resulted in a decrease in carbon emissions while increasing local logistics efficiency since their composition makes the pallets more durable than the standard wooden pallets typically used in Indonesia.

CJ Logistics has introduced Zero-Carbon Pallets made with recycled plastic waste into its distribution center in Jakarta, Indonesia
CJ Logistics has introduced Zero-Carbon Pallets made with recycled plastic waste into its distribution center in Jakarta, Indonesia

A pallet refers to a flat, horizontal platform used to store, transport and load goods at logistics sites. In general most logistics center in Indonesia use wooden pallets. However wooden pallets are often used for a short period of time due to high temperatures and humidity. The tropical climate causes the pallets to quickly decompose and can also attract pests. To address this issue, CJ Logistics plans to increase operation efficiency in its Jakarta distribution center by introducing a highly durable plastic pallet made with recycled plastic materials that is resistant to decomposition and pests. CJ Logistics collaborated with KOTRA to safely deliver Zero-Carbon Pallets to Indonesia.

CJ Logistics created the Zero-Carbon Pallets by combining plastic scraps obtained from CJ Logistics client LocknLock, a global household products company, with a new, green technology from pallet manufacturer Sangjin ARP. LocknLock generously provided CJ Logistics with 12 tons of leftover plastic produced while manufacturing household products, such as airtight containers, at no cost. The company then utilized these plastic as raw materials and produced 400 eco-friendly pallets, demonstrating a win-win partnership between CJ Logistics, LocknLock and Sangjin ARP.

Each Zero-Carbon Pallets can reduce 67.3 kg of carbon emissions, meaning the total amount of greenhouse gasses reduced during the manufacturing of 400 pallets is about 26,880 kg. This number is equivalent to the annual amount of carbon dioxide absorbed by 8,960 pine trees.

Zero-Carbon Pallets can also bring additional carbon reduction effects throughout the product's lifespan. Typically, damaged pallets are completely discarded resulting in waste. However, with Sangjin ARP's modular pallet technology (international patent pending), a damaged pallet can be restored and its broken part recycled. This technology is expected to further lessen costs and carbon emissions.

Although the pallet is made with recycled plastic waste, CJ Logistics has confirmed that the performance and strength of Zero-Carbon Pallets match those of standard pallets and can handle loads of up to one metric ton. These results are based on data gathered throughout the first year of the pallet's introduction at CJ Logistics' South Korean logistics center. Moreover, since the manufacturing cost of Zero-Carbon Pallets is similar to that of the new standard plastic pallets, CJ Logistics plans to continue to secure a supply of high-quality plastic waste in order to expand the implementation of this pallet at its global sites.

"By introducing the Zero-Carbon Pallets, we were able to simultaneously reduce carbon emissions and increase operational efficiency at our logistics site in Indonesia." stated Jin Mok Kim, a president director of CJ Logistics Indonesia. He added
"We are planning to expand the introduction of these eco-friendly pallets at our global sites and further practice a green logistics business model."

To learn more about CJ Logistics, please visit: https://www.cjlogistics.com/en/main

Source: CJ Logistics

Related stocks: Korea:000120

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